A family business can face uncertainty when a marriage ends. Owners may worry about losing control. The other spouse may want a fair share of the business’s value. Mediation can help both spouses discuss these concerns and seek an agreement.
How mediation addresses business ownership
Mediation lets spouses discuss property division with a neutral third party. The mediator helps them identify disputes, share information and consider solutions. The mediator does not decide who receives the business.
Under Ohio law, courts generally divide marital property in a fair way. A business may be marital property in whole or in part, even if only one spouse owns it. Mediation can help spouses decide how to address that interest.
What spouses should discuss
Spouses may need to address:
- How to value the company, including equipment, accounts and future income
- Whether one spouse will buy out the other’s ownership share
- How to divide business debts and liabilities
- Whether both spouses can continue working together after the divorce
- How any agreement may affect future business operations
Ohio law also requires spouses to separate marital property from separate property. A business owned before the marriage may gain value during the marriage. That increase may raise property division issues. Ownership records, financial statements and evidence of each spouse’s contributions can help clarify the situation.
When mediation may be difficult
Mediation works best when both spouses share complete financial information and take part in good faith. Hidden assets, major disputes about the business’s value or pressure from one spouse can make mediation harder. A mediator cannot force either spouse to accept an agreement.
Is mediation right for your family business situation?
Mediation may help spouses address business ownership, value and financial duties in a private setting. It cannot guarantee that one spouse will keep the company or receive a specific payment. A clear review of the business’s finances can help both spouses make informed decisions about their future.